Question: Journalizing adjusting entries and analyzing their effect on the income statement The following data at July 31, 2016, are given for KTR:
a. Depreciation, $200.
b. Prepaid rent expires, $100.
c. Interest expense accrued, $600.
d. Employee salaries owed for Monday through Thursday of a five-day workweek; weekly payroll,
e. Unearned revenue earned, $1,600.
f. Office supplies used, $300.
Requirements: 1. Journalize the adjusting entries needed on July 31, 2016.
2. Suppose the adjustments made in Requirement 1 were not made. Compute the overall overstatement or understatement of net income as a result of the omission of these adjustments.